UK NEWS
NOW MSPS GO TO WAR OVER LOTTO OLYMPIC JACKPOT
SCOTLAND: Losing out
By Tom Martin
HOLYROOD has signalled the start of another financial battle with Westminster over fears that Scotland is losing out to the London Olympics.
MSPs are becoming increasingly alarmed by the spiralling budget for the 2012 sports spectacular, fearing thousands of community projects north of the Border are at risk.
The SNP Executive is now seeking talks with UK Culture Secretary Tessa Jowell over the Government's move to grab an extra £675million of Lottery money for the £9billion event.
But senior opposition figures want an immediate end to the Whitehall "raid" after it emerged that a special series of Lottery games for the Olympics are generating almost £1million a day.
New figures from the National Lottery Commission reveal sales of £27million for March alone - compared to £272,000 when first launched two years ago. Figures also show a growth of almost £70million compared to February, prompting demands for an urgent review.
Scottish Liberal Democrat leader Nicol Stephen, who has campaigned for the creation of a fund to ensure Scots youngsters do not lose out, has written to Ms Jowell calling for some of the cash to be sent to Scotland.
In his letter, the former Deputy First Minister says there is a danger of the Lottery being seen as "a giant slush fund for the Olympics", as other sports, arts and community projects face the axe.
"Your proposals risk turning on its head everything the Government and Executive have claimed they want to see for young people," he warns. "Just as young people become inspired by sport, through the excitement and publicity that the 2012 Olympics may generate, they will find their hopes and opportunities dashed.
"The March figures, if sustained, will add considerably to the total receipts for the special Olympic Lottery fund and should reduce your imposed contribution from the remaining Lottery projects. Any growth in receipts from March and subsequent months should be earmarked for the non-Olympic Lottery distributors.
"If this additional support is not offered, the strong suspicion will remain that further raids on Scottish Lottery resources will be made to fill further gaps in the Government's Olympics budget."
The Government has warned that public sector funding for the Olympics would have to increase from an originally estimated £2.37billion to around £3.27billion. The National Lottery has been charged with raising £1.5billion towards the cost of the event.
Scotland faces loosing £51million in funding, with a further £15million of Lottery cash taken from SportScotland, the Scottish Arts Council and film agency Scottish Screen budgets.
While Lottery funding remains a reserved matter, there have been several cross-Border clashes over its use in the Olympics.
Earlier this year, then Labour Sports Minister Patricia Ferguson said it was "unfortunate'' that extra Lottery funding would be needed for Olympics costs, and called for non-Lottery sources to be considered.
And it is thought Secretary for Health and Wellbeing Nicola Sturgeon - who last week raised the prospect of financial conflict with Whitehall over plans to claw back £23million a year in benefit payments - has also now contacted Ms Jowell on the matter.
Linda Fabiani, the Minister for Europe, External Affairs and Culture, is also understood to be seeking an early meeting to discuss the situation.
An Executive spokeswoman said: "The Minister has stated that she supports the position the previous administration took in relation to Lottery funding for the Olympics - that serious consideration should be given to funding streams other than the Lottery to meet the additional costs. She will continue to vigorously pursue this."
The Department of Media, Culture and Sport last night said it accepted there had been a loss to other good causes. But a spokeswoman said:
"However, we remain convinced that the benefits the Games will bring will far outstrip any effect created by such a diversion."
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